Crime Healthcare: Over 20 years of Prime Healthcare’s misdeeds
Nurses across the country are rising up systemwide against Prime Healthcare because Prime endangers patients and nurses by putting profits above all else. From suspending nurses for speaking up and advocating for patients to cutting services after promising to maintain them, there are no crimes Prime isn’t willing to commit in its pursuit of profit.
2026: Anthem Blue Cross sues Prime alleging fraudulent use of the No Surprises Act mediation process has led to $15 million in wrongful payments since 2024.1
2025: Illinois Senators accuse Prime of reneging on promises to not cut services in hospitals acquired from Ascension due to department closures and loss of trauma center certifications in multiple facilities.2
2025: Prime looks to make cuts to patient care and demands that Reno RNs give up their negotiated nurse-to-patient ratios. Because of their union contract, management cannot unilaterally implement the change, and nurses engage in a ongoing fight to keep the ratios and maintain patient care standards.
2024: Prime Saint Clare’s Denville facility cited for unsafe working conditions leading to $45,000 penalty from OSHA.3
2024: Prime illegally terminates Redding nurse for engaging in patient advocacy. Because of their union contract, the nurse returns to work with back pay.
2023: Days before Christmas, Prime again fires 9 workers in union busting attempt at Saint Francis Medical Center, leading to a “substantial settlement”.4
2022: Prime pays $77,550 to settle discrimination lawsuit after rescinding job offer to pregnant employee with preeclampsia at Saint Clare’s Denville.5
2022: Prime Reno’s toxic environment of targeting and harassing nurses advocating for their patients ends after union leaders act and conduct a vote of no confidence, successfully having offenders removed from management.
2021: Prime and two doctors, including CEO Prem Reddy, pay $37.5 million to settle alleged kickback and false claims scheme, falsifying invoices for medical implants and allowing doctor with revoked Medicare billing privileges to use another doctor’s billing number.6
2020: Prime fires 22 workers in union busting attempt at Encino Medical Center in alleged NLRA violation, leading to settlement for back pay with interest.7
2019: Prime Healthcare and Prem Reddy pay $1.25 million to settle further false claims allegations regarding upcoding and unnecessary admissions scheme at two Pennsylvania hospitals.8
2018: Prime and CEO Prem Reddy pay $65 million in settlement for false claims allegations including upcoding, unnecessary admission, and falsifying records in scheme to increase Medicare reimbursement at California hospitals between 2006 and 2014.9
2017: Prime cited for wage and hour violations at Pennsylvania hospital leading to $31,250 penalty.10
2016: Prime illegally converts two Rhode Island hospitals to non-profits to skip out on property tax bill.11
2015: Former CNO of Encino Medical Center wins $1 million wrongful termination case against Prime for reporting affair between CMO and respiratory director.12
2012: Investigative journalists find Prime frequently reporting rare form of protein malnutrition in patients, which experts describe as “a coding phenomenon”.13
2011: CA Department of Public Health finds Prime inaccurately diagnosed patients with blood infection to profit from higher Medicare reimbursements.14
2010: Kaiser sues Prime for upcoding and patient trapping, though the case is dismissed, many claims bear resemblance to practices later described in settlements.15
2008: Prime Healthcare sued by California regulators for balance billing insured patients, later pays $1.2 million dollars to settle investigation.16
2006: California Attorney General sues Prime for closing gero-psychiatric unit at Sherman Oaks Hospital in violation of acquisition agreement.17
2005: ER nurses at Desert Valley Hospital win unlawful termination lawsuit against Reddy for whistleblowing inadequate care, and alleging Reddy worked while drunk.18
2003: Inspectors find Prime Healthcare filing to meet minimum safety standards, CEO Prem Reddy personally discharged uninsured patient under treatment without ensuring it would not pose a medical hazard.19
1999: CEO Prem Reddy arrested for attacking Desert Valley Medical Group Employee.20
1. Anthem sues 11 Prime hospitals, alleges $15M in fraudulent No Surprises Act awards
2. Durbin, Duckworth Demand Answers On Access To Care For Illinoisans After Prime Healthcare Reduces Services Following Acquisition Of Eight Hospitals
3. Occupational Safety and Health Administration Inspection: 1765511.015 - Prime Healthcare Services LLC
4. Settlement Reached for the Prime 9 (UNAC/UHCP)
5. Saint Clare’s Health to Pay $77,550 to Settle EEOC Disability Discrimination Lawsuit
6. Prime Healthcare Services and Two Doctors Agree to Pay $37.5 Million to Settle Allegations of Kickbacks, Billing for a Suspended Doctor, and False Claims for Implantable Medical Hardware
7. Prime Healthcare Will Give Workers Back Pay to Settle Unfair Labor Allegations
8. Prime Healthcare Services and CEO, Dr. Prem Reddy, to Pay $1.25 Million to Settle False Claims Act Allegations
9. Prime Healthcare Services and CEO to Pay $65 Million to Settle False Claims Act Allegations
10. Violation Tracker Individual Record: Prime Healthcare Services
11. Rhode Island fines Prime Healthcare $1M for illegally converting 2 hospitals to nonprofits
12. Sex Scandal Leads to $1 Million Wrongful Termination Verdict Against Prime Healthcare Hospital
13. Prime Hospital Abruptly Stops Billing Medicare for Rare Ailment
14. Probe finds hospital chain inaccurately diagnoses infections
15. Does Prime scavenge dying hospitals?
16. New Frontiers in Patient-Gouging: Balance-Billing Edition
17, 18, 19, 20. Hospital group rejects system and cashes in